TaxTMI 
TaxTMI 
Sir/Madame,
We are exporting goods to a project finance by Government of India line of credit.We are receiving paymnet in INR.Are we eligible for the export benefits under FTP?
Is Export Benefits under FTP is allowed if Export Proceeds are realized in INR against EXIM Bank/Government of India Line of Credit
31 May 2016 
8 Replies 
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Denomination of export contracts in rupees may preserve FTP benefits when funded under EXIM Bank or government line of credit.
Entitlement to FTP export incentives where payment is received in Indian rupees against an EXIM Bank/Government line of credit depends on movement of goods and classification of the supply. Advance Authorisation can cover deemed exports, but Chapter 3 export incentives do not apply to deemed exports; Advance Authorisation and Duty Drawback are not concurrently available. FTP para 2.52 permits INR-denominated contracts against EXIM/Government lines of credit and limited rupee realization routes, yet it does not expressly resolve how rupee realization affects eligibility for specific incentives. (AI Summary)
Entitlement to FTP export incentives where payment is received in Indian rupees against an EXIM Bank/Government line of credit depends on movement of goods and classification of the supply. Advance Authorisation can cover deemed exports, but Chapter 3 export incentives do not apply to deemed exports; Advance Authorisation and Duty Drawback are not concurrently available. FTP para 2.52 permits INR-denominated contracts against EXIM/Government lines of credit and limited rupee realization routes, yet it does not expressly resolve how rupee realization affects eligibility for specific incentives. (AI Summary)